FedEx Corporation (FDX)
Solvency ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.09 | 0.10 | 0.10 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.26 | 0.26 | 0.26 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.35 | 0.36 | 0.36 |
| Financial leverage ratio | 3.15 | 3.26 | 3.29 | 3.30 | 3.34 | 3.47 | 3.55 | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | 3.43 | 3.77 | 3.86 | 3.99 | 4.02 | 3.72 | 3.75 | 3.77 |
The solvency ratios of FedEx Corporation indicate a consistent trend of low levels of debt relative to assets and capital over the reported periods. The debt-to-assets, debt-to-capital, and debt-to-equity ratios remained stable at 0.00, indicating that the company has not relied heavily on debt to finance its operations.
The financial leverage ratio, which illustrates the extent of a company’s financial leverage, showed fluctuations over the periods but generally remained elevated, ranging from 3.15 to 4.02. This suggests that although the company has minimal debt, it still utilizes leverage to support its operations, with the ratio fluctuating within a relatively narrow range.
Overall, FedEx Corporation’s solvency ratios reflect a conservative financial structure with low debt levels in relation to assets, capital, and equity. The fluctuation in the financial leverage ratio indicates varying degrees of financial risk management by the company, but the overall stability of the debt-related ratios suggests a sound financial position.
Coverage ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 19.92 | 12.35 | 4.74 | 4.30 | 3.98 | 3.78 | 6.94 | 7.79 | 7.60 | 4.81 | 4.48 | 4.28 | 4.34 | 3.72 | 3.80 | 3.54 | 3.60 | 5.47 | 5.18 | 5.13 |
The interest coverage ratio of FedEx Corporation has exhibited volatility over the past few quarters, as shown in the table provided. This ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of covering its interest expenses.
In the most recent period ending May 31, 2024, FedEx reported an interest coverage ratio of 19.92, which is significantly higher compared to the previous periods. This indicates that the company's operating income is more than sufficient to cover its interest expenses. However, this ratio was notably lower in the previous quarter, indicating a fluctuation in the company's ability to cover its interest obligations.
Looking at the trend over the past several quarters, there has been some variability in FedEx's interest coverage ratio, with fluctuations between 3.54 and 19.92. The company experienced a significant improvement in its interest coverage ratio in the most recent period, possibly reflecting better operational performance or lower interest expenses.
It is essential for investors and stakeholders to monitor FedEx's interest coverage ratio closely to assess the company's financial health and ability to manage its debt obligations effectively. A consistent and healthy interest coverage ratio is crucial for long-term sustainability and stability in the company's financial position.